Scotiabank’s Global FX Strategy team reports that the British Pound (Sterling) remains modestly firmer against the US Dollar, with GBP/USD trading near long-term moving averages around 1.34. The currency pair continues to pivot around both the 100- and 200-day moving averages, reflecting a broad, flat range trade that has persisted over the past few months [1].
Short-term technicals are described as neutral to bullish, with last week’s rise in GBP/USD and trend oscillators hinting at upside potential. Specifically, Scotiabank notes that gains through the low 1.35 zone could allow the spot rate to retest the recent peak around 1.3555/1.3560, while support is identified at 1.3390/1.3400 [1].
Market sentiment is characterized as neutral to bullish, with limited trading activity due to the absence of UK data releases to drive volatility. UK Gilts are underperforming European bonds, but the EUR/GBP cross remains largely stable [1].
Overall, technical indicators suggest that while Sterling remains range-bound, there is potential for further gains if resistance in the low 1.35 zone is breached [1].
CONCLUSION
Sterling is trading in a broad range near key moving averages, with technicals indicating possible upside if resistance levels are surpassed. Market sentiment is neutral to bullish, but the absence of new UK data is keeping volatility subdued.